Overview of the Tariff Situation
U.S. President Donald Trump has recently announced a significant increase in tariffs on goods imported from India. Effective 21 days after August 7, the new tariff rate will rise to 50% on certain products, including textiles and jewellery. This decision comes in response to India’s ongoing purchase of Russian oil, which has raised concerns in Washington. The latest import tax, an additional 25%, positions India as facing some of the highest tariffs imposed by the U.S. on any trading partner.
This move has raised alarms within the Indian textile and jewellery industries, which heavily rely on exports to the U.S. market. While pharmaceuticals and mobile phones have been exempted from these tariffs, the potential impact on textiles and jewellery could disrupt trade relations significantly. The looming threat of a 50% tariff could lead to increased prices for consumers and a decrease in demand for Indian products in the U.S.
